I'm with a lot of people, it does look like it could turn out like Ergheiz Zwei.

For those of you who don't know what Ergheiz is, count yourself very, very lucky! (Of course, not to be confused with Einhander, that's pretty cool, but I digress!)

On the up hand, I can see the resemblance to Smash Bros., too. That would indeed be awesome. A couple of non-FF characters could be nice as unlockables, too... I''m thinking Sora & Riku as they have some FF ties already.

Looks ok. Doesn't seem like there will be a lot of characters. I read that so far only 6 villains have been announced and 5 heroes announced with the FF7 spot unannounced. I'm guessing it's Cloud. Or maybe they'll fool everyone and only put Caith Sith in.